Companies in UK and the US are racing to find new breakthroughs in electrochemistry that don’t depend on China’s assets to create battery expertise. As China at the moment holds 75% of the world’s cobalt refining capability and 59% of its lithium processing capability, new methods leveraging sulphur and sodium may make batteries considerably cheaper and simpler to supply.

Richard Doty, Investment Analyst at Gaintech Capital, says that this competitors is sweet for the market and can solely profit the buyer if developments in battery expertise are made.

Richard’s Thoughts

“One of the explanations we at GAINTECH love the battery expertise area is that there’s a variety in chemistries and we expect that that’s going to result in some nice competitors and truly assist to keep away from a number of the points round useful resource hoarding that we encounter with international locations like China.

Another actually nice risk that might come out of this for the world is that we may foresee sooner or later the event of regional chemistries that exist solely based mostly on accessible supplies which can be extra plentiful in a single space or one other, which isn’t one thing that you’d discover with oil and fuel. So in that case, you would possibly discover a chemistry that’s extra prevalent in Southeast Asia versus one which’s in North America and it serves these areas and areas very nicely. And it runs their vehicles, runs their infrastructure, and actually helps energy the longer term. And that’s why we’re all in round electrification and why we love the area a lot.”